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IAG Cargo reports “resilient” results

LONDON/MADRID:February 26, 2016. IAG Cargo has reported commercial revenue of €1.02 billion in 2015, an increase of 3.2 percent year-on-year but a drop of 4.6 percent when adjusting the result to reflect a directly comparable operation in 2014.

IAG Cargo CEO Drew Crawley commented: “These are resilient results in the face of challenging market conditions, where excess capacity and reduced demand are leading to significant price and yield pressures.”

Excluding Aer Lingus figures and the impact of IAG’s exit from the Atlas Air 747-8 freighter operation, the company said yield fell 4.0 percent in 2015 as capacity grew 3.0 percent while volume growth remained flat.

“Despite an initial boost from the West Coast port strike, 2015 was a year where the market forces of supply and demand became increasingly imbalanced,” Crawly noted. He said the airline’s revenue growth of 14 percent for express and 37 percent for pharma last year was a testament to controlled network expansion and strict capacity management.

“These results show our determination to maximize profitability and our new revenue management system, Optima, allows us to manage our capacity and set price more effectively. It is by enacting sensible commercial policies like this that we are able to reinvest in our products and services,” he added.

IAG Cargo plans for 2016 include the launch of cargo services to Lima, Peru; San Juan, PR; San Jose, California and San José Costa Rica, plus the integration of Aer Lingus Cargo as well as infrastructure improvements.